- Summary:
- The Wirex Dual-Mode card enables users to enjoy the efficiency of Traditional Finance (TradFi) and the benefits of decentralised lending etc.
UK-based digital payment company Wirex has launched the Wirex Dual-Mode Card, which aims to combine the reliability of traditional banking with “the revolutionary potential of decentralised Finance (DeFi). The Dual-Mode Card lets users to quickly and easily switch between Debit and Credit modes, allowing them to personalise their purchasing experience in real-time according to their needs and the current state of the market.
What you get with the Wirex Dual-Mode Card
In Credit Mode, the Wirex Dual-Mode Card uses a Collateral Debt Position (CDP) backed by cryptocurrency holdings as collateral. This mode is designed specifically for crypto investors. It leverages DeFi protocols for decentralised lending and borrowing, protecting users’ capital gains.
With the Debit Mode, users enjoy the benefits of a traditional debit card for purchases made in either stablecoins or fiat currencies. Wirex says that stablecoin and fiat currency users will appreciate this mode’s reduced volatility and consistent value support.
What are the benefits?
Wirex guarantees quicker, more efficient, and transparent financial processes by removing the inefficiencies and bottlenecks of TradFi and introducing the benefits of DeFi. Another huge benefit in many countries is that the Credit mode makes it possible for users to borrow against their crypto assets without creating a taxable event.
The Wirex Dual-Mode Card allows customers to avoid selling their cryptocurrency and instead use it as collateral, so they can keep any future gains. This option is integrated with Wirex App Chain’s Account Abstraction (AA) balance, which enables convenient features like direct management, the absence of risk from intermediaries, and close integration with DeFi.
By syncing the card with the AA balance, Wirex has enabled its users to manage their money without involving any third parties. In addition, the DeFi features of the card are enhanced by the link to the AA balance. As a result, cardholders can benefit from the advantages of decentralised financing without giving up full control of their assets.